If it was caused by a bug they wouldn't have told him "you have no future with oracle" and that he couldn't create a new account -- they would have just created a new account, apologized, and given him a few months credit.
It on the Terms of Service, it said customers are only eligible to sign up once. Which sounds like something in the terms of service. They didn't say you're banned from using the service but instead said people are only eligible to sign up once.
Here's the interesting part: I have two Oracle Cloud accounts (one under a different name, basically made by a different person and I just manage it). That other account runs a Fediverse instance, basically a social network where images and posts are “federated”, which could practically mean ANY content, including the illegal kind.
If that account was nuked for disobeying the terms of service, I would've somehow understood the reason. Most likely because some CSAM was uploaded which was federated to my / Oracle's servers.
However, that server and account wasn't deleted. Only my account, which simply had a Nextcloud instance on it, was deleted in this strange way. Now, technically you could also host horrible stuff on Nextcloud, however I am VERY certain this isn't the case. Additionally, I think they'd need to tell me if that was the reason?